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The European
Military Synthetic Training and Simulation Markets earned revenues
of $1.1 billion in 2006. Frost & Sullivan finds estimates
this market segment to reach $1.8 billion in 2015. "As
European countries increase cooperation in joint military training
programs to promote improved training efficiency and cost reductions
in net-centric warfare (NCW) environments, the markets for military
synthetic training and simulation will expand, " explains
Frost & Sullivan Research Analyst Marie-France Mann. "The
switch to joint training will mean that a series of networked
simulation devices will need to be procured even as current
systems will have to be upgraded, networked or replaced."

Besides, despite procurement costs, European militaries are
likely to acknowledge the time and cost efficiency benefits
offered by simulated training equipment. Operation and maintenance
expenditures incurred while using simulated training devices
for military training purposes are significantly lower than
that incurred using actual military equipment. "Time efficiency
is also an important factor as more training can be imparted
on simulators compared to actual systems," adds Ms. Mann.
"In terms of personnel safety, simulation helps avoid injuries
and accidents that can occur during actual training."

Despite the optimistic scenario, contracts are decreasing in
number. This situation is compelling subcontractors to win at
least a segment of these contracts in order to survive and avoid
exiting the market altogether. Also, as the number of participants
increases, competition is intensifying and the market is becoming
fragmented placing tremendous pressure on small- and medium-sized
contractors. "Manufacturers must aim to design open and
highly interoperable architectures to meet next generation synthetic
training requirements necessitated by joint training programs,"
advises Ms. Mann. "Being proactive on design, delivery
and service capabilities together with a focus on innovation
will be key to achieving product differentiation and market
success."